Currently, Jill handles the Operations part of her business in a very traditional way. There is huge potential of saving time and effort by using the right kind Information Technology Solution. The unique thing about ERP system is the capability of purchasing each module based on the needs and integrates each module to create a personalized system. In this case the modules that Jill’s Table needs are, Marketing, Sales, and Customer Support (CRM) to deliver superior customer service and product knowledge, Inventory and Logistics Management to diminish the manual checking and data entry, Financial Management, and Human Resource Management for employee management and salary distribution. ERP system might be highly costly for the current state of the business. However, Jill’s Table needs to think for the growth, long-term capability, and the efficient data and insights she might get that far outweigh the cost.
ERP is very easy to quantify which will provide Jill with IT cost savings and Business efficiency
• ERP has the potential for greatest impact on the functional aspects of a business by providing the below mentioned 3 features:
1) Business process platform (standardization) – This provides a platform for all the functional areas to use a standardized system, which is easy and efficient to collaborate
2) Business innovation catalyst – With a single collaborative platform, the employees working in different functional areas can collaborate and share ideas that will provide stimulate new thinking for innovation.
3) Data and insights can be shared across departments.
ERP provides an Integrated view of core business processes, often in real-time which helps businesses to track business resources like cash, raw materials, production capacity and the status of business commitments: orders, purchase orders, and payroll. It also facilitates information flow between all business functions and outside stakeholders
Advantage of SaaS: As business is venturing into eCommerce for the first time, SaaS will take care of much of the complexity and integration into our current system will be simpler with easily accessible APIs’. There is no hassle of dealing with software issues with automatic updates. The cloud platform ensures all users have same version of the software making troubleshooting easier and getting help easier.
Disadvantage of SaaS: The disadvantage of using SaaS is that you are essentially handing over all software and system related info to someone else. Because SaaS is not a self-hosted solution, you are dependent on the vendor. Hence, you don’t have complete control over configuration options, business data etc.
Advantage of PaaS: The biggest advantage of PaaS over SaaS is that you get to develop your own development and web applications, with greater control and configuration. For example, if Jill’s business uses the Google App Engine, she will not be restricted by platform, which would be a problem faced in SaaS. PaaS allows Jill to be more creative in her web application solutions which syncs with her business brand. Hence, PaaS will give her more flexibility as the business expands.
Disadvantage of PaaS: When compared to SaaS, PaaS is not an out-of-the box product. Jill will need to a team to design, create and test the software, web applications etc. The onus of code breakdowns, problems faced when launched to the customer etc will be on Jill.
Advantage of IaaS: IaaS will allow Jill to focus on her business of selling and not devote time and resources to IT administration tasks such as managing hardware, servers, data centers etc. IaaS allows Jill to pay for added infrastructure as the business expands.
Disadvantage of IaaS: Complete trust needs to there with vendor for data security. Backup of data, recovery of data is very challenging
Flexbility of solution
Understand the company and competitive positioning